A homeowner would require a payment and performance bond to assure what?

A homeowner would require a payment and performance bond to assure what?

• A. Timely payment to the contractor
• B. Quality of workmanship
• C. Job completion and no liens for labor and materials
• D. Compliance with local codes

Answer: (C)

Bonds protect the homeowner from contractor risk by guaranteeing both the project will be finished and that labor and material payments won’t create liens against the property. A payment and performance bond means the surety will step in if the contractor fails—finishing the job per the contract and ensuring subcontractors and suppliers are paid, so there are no mechanic’s liens. This is why the best choice is that it assures job completion and no liens for labor and materials. It does not guarantee quality of workmanship or adherence to codes, which involve licensing, inspections, and workmanship standards, not the bond.

Bonds protect the homeowner from contractor risk by guaranteeing both the project will be finished and that labor and material payments won’t create liens against the property. A payment and performance bond means the surety will step in if the contractor fails—finishing the job per the contract and ensuring subcontractors and suppliers are paid, so there are no mechanic’s liens. This is why the best choice is that it assures job completion and no liens for labor and materials. It does not guarantee quality of workmanship or adherence to codes, which involve licensing, inspections, and workmanship standards, not the bond.